KUALA LUMPUR: Kenanga Investment Bank Bhd (Kenanga IB) has maintained its 2025 inflation forecast at 1.5 per cent, expecting a temporary rise to around two per cent in the fourth quarter due to targeted subsidy reforms.
It projected Malaysia’s gross domestic product (GDP) to expand 4.5 per cent next year, up from an earlier 4.3 per cent forecast, driven by stronger momentum in the second half of 2025.
With inflation pressures contained, Bank Negara Malaysia is expected to keep the policy rate at 2.75 per cent over the next 12 months.
Kenanga noted the BUDI95 fuel subsidy mix could add 0.2–0.3 percentage point to inflation in October, though the effect should be short-lived. – BERNAMA
